Leasing vs. buying a new car – which is the best option?

Having a car is not affordable; usually, you have to pay more than the price of the vehicle to maintain it. The good thing is there are always alternatives to buying, like leasing a car. But which is the best option for your wallet? The best choice on leasing vs. buying for you depends on many factors, such as age, financial status or future goals.

man driving a car wearing wrist watch

Buying a car 

Buying a car is easy, especially when it`s a new one. You can choose from all available models, and where do you count that you have many environmentally friendly options too. In the past years, car prices went up, so you`d look for alternatives for buying at some point.

Advantages and disadvantages

The advantages of buying a car are:

  • The vehicle is all yours, and you can have it for as much as you want because it`s your name written in the contract, and you can prove that you`ve paid for it.
  • You don`t have to limit your mileage; you can travel with your car anywhere, and there are no restrictions.
  • You can customise it as you please (you can change the interior`s colour scheme, install additional lighting or even change your car`s wheels).

On the other hand, the disadvantages are: 

  • More costs come after you`ve bought the car (taxes, fees that you will pay annually or whenever it`s necessary).
  • Loan payments are high (because you`re delivering the whole value of the car, so you can keep it for an unlimited time.)
  • The car`s value will decrease through the years, so you`ll have to change it at some point. It also may break, and you may unexpectedly need to pay for fixing something.

Leasing a car

A car lease is an easy process where you can get almost any car you want, but for a limited time. The prices are way more affordable, and you`ll use the vehicle only when you need it. It`s an excellent opportunity to try more vehicles and find out what`s the best one.

Advantages and disadvantages

The advantages of leasing a new car are:

  • Because you`re paying only for the usage from that limited time, the lease payments are way lower than those for a new car. 
  • You don`t have to worry about the car`s value in time because you`re only using it now. At the same time, you`re driving that car in its best condition.
  • You can purchase the car at the end of the term or just look for another one—no other complicated procedures.

At the same time, there are also disadvantages to leasing:

  • You can`t add any modifications to the car.
  • You have to be extra careful not to damage the vehicle.
  • You don`t own the car.

To conclude, you`ll have to seriously think about what`s best for you and ask yourself: is it for a long-term or short-term situation? Then proceed to look out for what`s the most beneficial and profitable option.